Crisis Economics by Nouriel Roubini
A Crash Course in the Future of Finance

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This myth shattering book reveals the methods Nouriel Roubini used to foretell the current crisis before other economists saw it coming and shows how those methods can help us make sense of the present and prepare for the future.

Renowned economist Nouriel Roubini electrified his profession and the larger financial community by predicting the current crisis well in advance of anyone else. Unlike most in his profession who treat economic disasters as freakish once-in-­a-lifetime events without clear cause, Roubini, after decades of careful research around the world, realized that they were both probable and predictable. Armed with an unconventional blend of historical analysis and global economics, Roubini has forced politicians, policy makers, investors, and market watchers to face a long-neglected truth: financial systems are inherently fragile and prone to collapse.

Drawing on the parallels from many countries and centuries, Nouriel Roubini and Stephen Mihm, a professor of economic history and a New York Times Magazine writer, show that financial cataclysms are as old and as ubiquitous as capitalism itself. The last two decades alone have witnessed comparable crises in countries as diverse as Mexico, Thailand, Brazil, Pakistan, and Argentina. All of these crises-not to mention the more sweeping cataclysms such as the Great Depression-have much in common with the current downturn. Bringing lessons of earlier episodes to bear on our present predicament, Roubini and Mihm show how we can recognize and grapple with the inherent instability of the global financial system, understand its pressure points, learn from previous episodes of "irrational exuberance," pinpoint the course of global contagion, and plan for our immediate future. Perhaps most important, the authors-considering theories, statistics, and mathematical models with the skepticism that recent history warrants—explain how the world's economy can get out of the mess we're in, and stay out.

In Roubini's shadow, economists and investors are increasingly realizing that they can no longer afford to consider crises the black swans of financial history. A vital and timeless book, Crisis Economics proves calamities to be not only predictable but also preventable and, with the right medicine, curable.

About Nouriel Roubini

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Nouriel Roubini is a professor of economics at New York University's Stern School of Business. He has extensive senior policy experience in the federal government, having served from 1998 to 2000 in the White House and the U.S. Treasury. He is the founder and chairman of RGE Monitor (, an economic and financial consulting firm, regularly attends and presents his views at the World Economic Forum at Davos and other international forums, and is an adviser to cental bankers around the world.Stephen Mihm writes on economic and historical topics for The New York Times Magazine, The Boston Globe, and other publications. The recipient of numerous fellowships, he was the Newcomen Postdoctoral Fellow in Business History at Harvard Business School from 2003 to 2004. He is currently an associate professor of history at the University of Georgia, where he teaches courses on American political, cultural, and economic history.
Published May 11, 2010 by Penguin Books. 368 pages
Genres: Business & Economics, Mystery, Thriller & Suspense, Science Fiction & Fantasy, Action & Adventure, Literature & Fiction. Non-fiction

Unrated Critic Reviews for Crisis Economics

Kirkus Reviews

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These range from the fundamental—reform of Wall Street’s compensation system, the securitization process and private ratings agencies, and a crackdown on derivatives and bank supervision—to the radical—thoroughly rethinking the nature and composition of regulatory agencies, tackling the problem o...

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The New York Times

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“By the spring of 2006,” Mr. Roubini writes, “the financial system, with its extraordinary reliance on leverage — and its blind faith that asset prices would only continue to rise — was primed for a breakdown of monumental proportions.” Whereas some Wall Street observers have argued that the ...

May 06 2010 | Read Full Review of Crisis Economics: A Crash Cou...

The New York Times

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Since banks will always make mistakes, Roubini argues, they should be required to retain more capital and maintain higher levels of liquid assets (cash and securities that can be sold quickly).

Jun 27 2010 | Read Full Review of Crisis Economics: A Crash Cou...

The Guardian

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banks, businesses, people and even countries are likely to go under in the years ahead, and policymakers still have not dealt with the core problem of moral hazard, where banks have an incentive to behave recklessly because they know they will be bailed out.

May 22 2010 | Read Full Review of Crisis Economics: A Crash Cou...

The Globe and Mail

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They're tackling this because so much of mainstream economic thinking focuses on how markets behave when they're working the way they're supposed to - and this approach presupposes that markets are essentially efficient, and that the invisible hand works well.

Jun 25 2010 | Read Full Review of Crisis Economics: A Crash Cou...

Management Today

Roubini and his co-author Stephen Mihm, associate professor of history at the University of Georgia, conveniently assemble the toxic elements that brought about the recent financial collapse: lax monetary policy, reckless financial innovation, moral hazard, poor corporate governance, growth of a ...

Jun 01 2010 | Read Full Review of Crisis Economics: A Crash Cou...

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